AI Investment, Government Borrowing Drive Global Cost of Capital Higher: Goldman Sachs

AI investment, government borrowing drive global cost of capital higher: Goldman Sachs

Goldman Sachs says the global cost of capital is rising as AI infrastructure spending pushes companies to borrow more while governments also increase debt for infrastructure, energy security and defence. The bank warned that higher funding costs could weigh on equities if earnings growth slows, even as AI-related borrowers drive a growing share of bond issuance.

The AI Boom Has A New Problem: The Cost Of Capital (SPX)

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AI borrowing, fiscal deficits drive global yields higher: Goldman Sachs

Rising spending on artificial intelligence (AI) infrastructure and higher government borrowing are pushing up the global cost of capital, as companies raise more debt and equity to fund investment while governments increase borrowing for infrastructure, energy security and defence, Goldman Sachs said in a report.